Enter your email Address

LookUpStrata

Strata Information Leading to Open Discussion

advert Lannock strata finance
Australia's Top Property Blog Dedicated to Strata Living
  • Home
  • What is strata?
    • Strata Legislation – Rules and ByLaws
    • What is Strata?
    • Glossary of NSW Strata Terms and Jargon
    • Understand Strata Management with this Five-Minute Guide
    • Cracking the Strata Fees Code
    • Strata Finance
  • Strata Topics
    • Strata Information By State
      • New South Wales
      • Queensland
      • Victoria
      • Australian Capital Territory
      • South Australia
      • Tasmania
      • Western Australia
      • Northern Territory
    • Strata Information By Topic
      • By-Laws & Legislation
      • Smoking
      • Parking
      • Noise & Neighbours
      • Insurance
      • Pets
      • Your Levies
      • New Law Reform
      • Maintenance & Common Property
      • Committee Concerns
      • NBN & Telecommunications
      • Building Defects
      • Renting / Selling / Buying Property
      • Strata Managers
      • Building Managers & Caretakers
      • Strata Plan / Strata Inspection Report
      • Apartment Living Sustainability
    • Strata Webinars
      • NSW Strata Webinars
      • QLD Strata Webinars
      • VIC Strata Webinars
      • ACT Strata Webinars
      • SA Strata Webinars
      • WA Strata Webinars
    • Upcoming and FREE Strata Events
  • Blog
    • Newsletter Archives
  • The Strata Magazine
    • The NSW Strata Magazine
    • The QLD Strata Magazine
    • The VIC Strata Magazine
    • The WA Strata Magazine
  • Site Sponsors
  • About Us
    • Testimonials for LookUpStrata
  • Help
    • Ask A Strata Question
    • Q&As – about the LookUpStrata site
    • Sitemap
Home » Insurance » NAT: My cash settlement does not include GST

NAT: My cash settlement does not include GST

Published March 27, 2024 By Tyrone Shandiman, Strata Insurance Solutions Leave a Comment Last Updated March 27, 2024

Share with your strata community

  • Share
  • LinkedIn
  • Email

This article is about GST and cash settlements.

BCCM July Webinar 2025 Promo

Question: The OC’s insurer offered a cash settlement for a claim on water damage to my lot. The amount was paid to the OC ex GST, and this has been passed onto me. How do I recover the GST?

The owners corporation’s (OC) insurer offered a cash settlement for a claim on water damage to my lot. Because the OC is registered for GST, the agreed amount was paid to the OC ex GST. I paid for the repairs, not the OC. When the OC transferred the money to me, they paid me the amount ex GST. We are now in a legal battle concerning the GST amount.

The agreed cash settlement was over $100,000, so I’ve lost over $10,000.

CLICK HERE TO BE NOTIFIED WHEN WE PUBLISH CONTENT TO THE SITE

Answer: For the GST component to be claimable, the invoice must be in the name of the owners corporation.

For an entity registered for GST, insurers can only settle the GST exclusive amount according to tax laws, as in theory, the entity can claim the GST back from the Australian Tax Office in their next tax return. This can create problems for a lot owner seeking a reimbursement where the owners corporation is GST registered, and the lot owner is not.

If you are an owner and not GST-registered, and you wish your invoice to be settled as the GST-inclusive amount, we have detailed the process we recommend below.

Ensure the repair invoice is in the name of the owners corporation and submitted to them. Despite receiving the GST-exclusive amount, the owners corporation should reimburse you the total amount, including GST. The OC will then claim the GST back on their next tax return. It is essential to note that for the GST component to be claimable, the invoice must be in the name of the owners corporation.

If you have not completed repairs, I recommend following the above process to request the GST component of your claim.

Tyrone Shandiman
Strata Insurance Solutions
E: [email protected]
P: 1300 554 165

This information is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Shandit Pty Ltd T/as Strata Insurance Solutions strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances. Shandit Pty Ltd T/As Strata Insurance Solutions is a Corporate Authorised Representative (No. 404246) of Insurance Advisenent Australia AFSL No 240549, ABN 15 003 886 687.

This post appears in the April 2024 edition of The NSW Strata Magazine.

Have a question or something to add to the article? Leave a comment below.

Embed

Read next:

  • Video: Pros and cons of Cash Settlement claims in strata insurance
  • NSW: Q&A Owners Corporation Insurance Requirements in Strata

Visit Maintenance and Common Property OR Strata Insurance

Looking for strata information concerning your state? For state-specific strata information, try here.

After a free PDF of this article? Log into your existing LookUpStrata Account to download the printable file. Not a member? Simple – join for free on our Registration page.

Share with your strata community

  • Share
  • LinkedIn
  • Email

About Tyrone Shandiman, Strata Insurance Solutions

Tyrone Shandiman is a seasoned professional in the insurance industry having embarked on his journey in 2004 within the financial services sector. In 2011, he established Strata Insurance Solutions, transforming a garage startup into a reputable firm servicing over 700 clients with a dedicated focus on strata insurance. Tyrone's role extends beyond managing operations and tackling complex insurance matters; he also founded the Australian Consumers Insurance Lobby, championing consumer rights within the insurance industry. Notably, his efforts and expertise have been acknowledged with numerous industry awards. Adding to these accolades, Strata Insurance Solutions was recently named an Australian Top Brokerage by Insurance Business Australia Magazine, a testament to the firm's excellence and leadership in the field.

Tyrone's LinkedIn Profile.

Tyrone is a regular contributor to LookUpStrata. You can take a look at Tyrone’s articles here .

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search For Strata Articles

  • Advert Stratabox
  • StrataBox Advert
Subscribe Newsletter

TESTIMONIALS

"LookUpStrata should be compulsory reading for every member of a Body Corporate Committee. It provides the most understandable answers to all the common (and uncommon) questions that vex Body Corporates everywhere. Too often Committee members do not understand what Body Corporates are legally able to do and not do. LookUpStrata helps educate everybody living in a Body Corporate environment for free." John, Lot Owner

"It's the best and most professional body corporate information source a strata manager could have! Thanks to the whole team!" MQ, Strata Manager

"I like reading all the relevant articles on important issues on Strata living that the LookUpStrata Newsletter always effectively successfully covers"
Carole, Lot Owner

"Strata is so confusing and your newsletters and website are my go-to to get my questions answered. It has helped me out so many times and is a fabulous knowledge hub." Izzy, Lot Owner

Quick Login

Log In
Register Lost Password

Categories

  • Contact a Strata Specialist on the LookUpStrata Directory
  • Ask Us A Strata Question
  • New South Wales
  • Queensland
  • Victoria
  • Australian Capital Territory
  • South Australia
  • Tasmania
  • Western Australia
  • Northern Territory
  • ByLaws & Legislation
  • Smoking
  • Parking
  • Noise & Neighbours
  • Insurance
  • Pets
  • Levies
  • Law Reform
  • Maintenance & Common Property
  • Committee Concerns
  • NBN & Telecommunications
  • Building Defects
  • Renting / Selling / Buying
  • Strata Managers
  • Building Managers and Caretakers
  • Strata Reports / Plans
  • Sustainability

Recent Comments

  • Irene smith on QLD: Q&A Who Can Access Common Property?
  • Fris on QLD: Q&As Keys, fobs, swipe cards, security access and issues
  • Nikki Jovicic on VIC: Expert Panel To Review Owners Corporation Laws
  • Nikki Jovicic on QLD: Removing a terrible Caretaker – Terminating Management Rights. VIDEO
  • Josephine Tedesco on VIC: Expert Panel To Review Owners Corporation Laws
  • Auriel June on NAT: Understanding concrete cancer in strata buildings
  • Pauline Saunders on WA: Strata Manager Qualification Requirements Changes and Compliance
  • Barry Beveridge on QLD: Removing a terrible Caretaker – Terminating Management Rights. VIDEO
  • Barry Ewing on QLD: Owner Improvements
  • Josephine Tedesco on VIC: Expert Panel To Review Owners Corporation Laws

WEBSITE INFORMATION

  • Privacy Policy
  • Terms and Conditions of Use
  • Terms of Use for Comments and Community Discussion
  • Advertising Disclosure
  • Sitemap

ASK A STRATA QUESTION

You’ve Found Strata Help!

Ask a strata, owners corporation or body corporate question and we will do our best to source a useful response from our network of strata professionals around Australia. Submit your question here.

Disclaimer

The opinions and/or views expressed on the LookUpStrata site, including, but not limited to, our blogs and comments, represent the thoughts of individual bloggers and our online communities, and not those necessarily of LookUpStrata Pty Ltd. In all instances, information should not be taken as advice and independent legal advice should be consulted.

CONTACT US VIA EMAIL

Copyright © 2025 · LookUpStrata ® Pty Ltd · All rights reserved